UK Individual Tax

Earned Income

An individual is taxed on most sources of income if they are UK-resident or if the income is UK derived. Some exceptions exist, however, including some state benefits, dividends under £5,000 and some types of savings interest.

The table below shows the personal tax rates for the tax year ended 05 April 2018:

Band

Taxable income

Tax rate

Personal Allowance

Up to £11,500

0%

Basic rate

£11,501 to £45,000

20%

Higher rate

£45,001 to £150,000

40%

Additional rate

over £150,000

45%

Personal Savings Allowance
You are entitled to up to £1000 of tax free interest income depending on your tax bracket: